RSI and MACD Momentum Signals with Percentage Exits

Summary

This Pine Script strategy combines changes in a smoothed RSI with changes in the MACD histogram to produce a single momentum signal. It opens or reverses long and short positions when that signal crosses a configurable positive or negative threshold, and restricts trading to a chosen date window. The script also specifies percentage-based stop-loss and take-profit distances and plots indicators and position state for inspection.

The document provides implementation details and parameter defaults, but no backtest results or evidence that the approach is profitable. Its RSI smoothing expression appears to repeat the current RSI term, which may be unintended, and the excerpt ends partway through a plotting expression. Exit orders are conditioned on entry signals, so their behavior warrants careful verification in the platform. Traders should validate the code, model fees and execution, and test across instruments and market regimes before drawing conclusions.

Key ideas

• The strategy combines changes in smoothed RSI and MACD histogram into one momentum signal.
• Long and short entries use configurable positive and negative signal thresholds.
• Trading is limited to a configurable date range and uses percentage-based exit distances.
• The supplied script is incomplete and provides no performance evidence.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.